The U.S. Department of Labor has granted a federal exemption allowing the Hawai‘i Pacific Health Retirement Plan to sell a Honolulu property to Straub Clinic & Hospital for at least $16.247 million, following a review designed to protect the pension plan and its participants.
The exemption, known as Prohibited Transaction Exemption 2026-05, took effect August 21, 2026. It permits the retirement plan to sell property at 888 South King Street to Straub, a wholly controlled subsidiary of Hawai‘i Pacific Health whose employees participate in the pension plan.
Ordinarily, a retirement plan selling an asset to a closely related party can run afoul of prohibited-transaction provisions under the Employee Retirement Income Security Act, or ERISA. The Labor Department determined that the transaction could proceed if extensive conditions intended to safeguard the retirement plan are satisfied.
The Sale Must Bring the Retirement Plan at Least $16.247 Million
Under the exemption, Straub cannot simply purchase the property for a predetermined $16.247 million…